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Harry Cassin Publisher and Editor

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Elizabeth K. Spahn Editor Emeritus 

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Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

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Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

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Wednesday
Apr302014

Top Indonesia oil and gas regulator jailed seven years for graft

Rudi Rubiandini, the former head of Indonesia’s upstream oil and gas regulator SKKMigas, was sentenced to seven years in jail Tuesday for taking more than $1.5 million in bribes.

 The anti-corruption court in Jakarta convicted Rubiandini of money laundering and receiving cash, Petro Global News said.

He was arrested by the independent Corruption Eradication Commission (KPK) in August last year.

The sentence includes a fine of 200 million rupiah ($17,000) or an additional three months in jail if the fine isn’t paid.

When Rubiandini was arrested, authorities found about $200,000 in cash in his home.

They also recovered $350,000 in his safe deposit box at Bank Mandiri, and Singapore currency worth about $50,000 and 180 grams of gold coins from his safe box in his office.

Rubiandini was arrested with his golf trainer Deviardi (Indonesians often use just one name), who allegedly handled bribes of $700,000 from Simon Gunawan Tanjaya, a director of the PT Kernel Oil Private Limited, the Indonesia unit of  Singapore-based Kernel Oil.

SKKMigas sells excess oil and gas that can’t be used by state energy company Pertamina.

Three other officials from the regulator were detained last August.

About 40 firms are registered to buy oil and gas from SKKMigas.

Three other top SKKMigas officials were also arrested in the days following Rubiandini’s arrest.

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Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.